Developer nixes $1M state aid for Bridgeport project over wage rules, drops affordable housing plan
BRIDGEPORT — When does a private developer refuse nearly $1
million of state financial aid?
In Kiumarz Geula's case, when accepting those funds would
have required paying contractors working
on his high-profile downtown housing project at the AT&T tower Connecticut's
prevailing wage. He maintains that the rule would have hiked costs and
"potentially derailed" the plan, which is generally viewed as a key
step in the neighborhood's ongoing revival.
Instead, Geula significantly altered his vision. He is still
moving ahead with 77 artist lofts and a pair of restaurants within the
renovated tower and is aiming for a June 2026 completion. But a planned new
60-unit adjacent structure will no longer be affordably priced.
"We are currently working on an all-market-rate housing
scenario," he said in an email exchange this week.
In February 2024, Mayor Joe Ganim touted Geula's
redevelopment plan as key to his administration's efforts to respond to the
region's high housing costs and shortage.
"These properties will offer affordable housing options
in this challenging market," the
mayor said in a press release at that time. "This project is
consistent with my administration’s goals of aggressively developing
properties, especially in the downtown, and addressing the housing shortage. We
are also excited about the opportunity for new, fun dining options.”
Geula said his bottom line was also impacted when the City
Council tabled his request for municipal tax incentives last summer and
never revived it.
The New York City-based businessman has been buying up
prominent downtown landmarks, including the former home of the Connecticut Post
on State Street, the
Bijou Theater block on Fairfield Avenue, the
Downtown Cabaret Theater building on Golden Hill Street, and the
former American Telephone and Telegraph Co. tower at 430 John St. and the
neighboring land at 455 Fairfield Ave.
In summer 2023, the state awarded a pair of loans
totaling $1.98 million for the redevelopment of the John Street
and Fairfield Avenue addresses to help cover expenses associated with
environmental cleanup. Geula said at the time that he intended to renovate the
tower into 77 artist lofts and two restaurants and build 60 affordable
apartments in a new structure along Fairfield Avenue.
But in emailed responses this week to questions about his
progress, Geula acknowledged he turned down half of that nearly $2 million
in state assistance.
"This ... loan would have required the project to be
constructed using prevailing wage, which would have significantly increased
costs and potentially derailed the project," Geula wrote.
Jim Watson, spokesman for the Connecticut Department of
Economic and Community Development, confirmed that Geula left $990,000 on the
table. Watson said the developer would need to explain why but clarified,
"State funding over $1 million triggers a determination by the Connecticut
Department of Labor as to whether prevailing wage applies to a new construction
project."
Miguel Fuentes, a representative with the carpenter's union,
said, "The benefit of having prevailing wage means workers in the area get
paid the actual market forces and the average median income." And, he
said, the rule helps keep developers "honest."
"We've seen a pattern of behavior where developers
knowingly avoid taking anything above $1 million," Fuentes said.
He and other labor leaders recently protested Geula's
project after the state's Wage and Workplace Standards Division issued
stop-work orders there in early March over misclassification of
workers — which can potentially impact pay — and failure to have workers'
compensation insurance. Those orders have since been lifted, with settlement
talks scheduled for an unpaid $43,800 civil penalty.
Geula insisted then, "We have worked closely with our
contractors to address most of (the Workplace Standards Division's) concerns
and have adjusted our site to meet their expectations. Our goal remains to
collaborate with all agencies and continue developing innovative and dynamic
spaces in Bridgeport."
Besides the two state loans, Geula sought municipal tax
breaks to help finance 430 John St. and 455 Fairfield Ave. But, according
to meeting minutes last July, the Bridgeport City Council's economic
development and contracts committees tabled a vote after discussing the
appropriateness of the subsidies and whether the project included enough
cheaper units.
Geula, however, did receive $2 million from Bridgeport in
federal housing funds through an annual grant award process that involved the
council. That $2 million supplemented private financing and historic tax
credits. In exchange, 10 of his artists' lofts will be affordable, according to
the city.
"The strongest tool that we have as a city to encourage
the construction of affordable units is through tax incentives,"
Thomas Gaudett, Mayor Joe Ganim's chief administrative officer, said in a
statement for this article. "It is often the case that without such
incentives, the math doesn't work for developers, and it makes more economic
sense for them to construct market-rate units instead."
Gaudett said the city is "still actively engaging with
the developer to explore other financing options ... that might help finance
the construction of at least some affordable units" at 455 Fairfield Ave.
He said that could involve state programs like the Connecticut Housing Finance
Authority, the Connecticut Department of Housing and the Municipal
Redevelopment Authority.
Regional offshore wind study comes as Trump cancels N.Y. project
Greg Smith
An optimistic new study assessing opportunities in the
region's offshore wind supply chain was released last week, highlighting
current work and the potential for future jobs and collaboration in the
offshore wind industry.
The study’s release came during the same week that the Trump
administration ordered a permitted New York offshore wind project to halt
construction, another example of the headwinds the industry continues to face
in the United States.
Interior Secretary Doug Burgum ordered the Bureau of Ocean
Energy Management to pause the Empire Wind project off the coast of Long Island
while it reviews the approvals that led to the start of its construction in
2024. Burgum said in a social media post that BOEM is reviewing information
that suggests the Biden administration “rushed through its approval without
sufficient analysis." Empire Wind is owned by Norwegian company Equinor.
Whether the Trump administration’s decision on Empire Wind
is a warning sign for other permitted projects remains unclear. Construction on
Ørsted’s largest project in the U.S. to date, the 704-megawatt Revolution Wind,
continues in earnest off the coast of Rhode Island. Construction is evident in
the pace at which turbine components are moving to and from New London's State
Pier, where the parts are being marshaled and assembled, Connecticut Port
Authority Board of Directors Chairman Paul Whitescarver said.
Revolution Wind remains the only offshore wind farm that
will provide Connecticut with power — 304MW to Connecticut and 400 MW to Rhode
Island — and is the second of three planned offshore wind projects that State
Pier will host. Parts for New York's 84-turbine Sunrise Wind are expected to
start arriving just weeks after Revolution Wind is completed at the end of this
year and keeping State Pier busy potentially through the start of 2027.
Whitescarver said at least 32 of Revolution Wind's 65
turbines have been installed or are in the process of being installed. The $310
million investment in State Pier identified in the study is credited with
creating the "East Coast hub" for offshore wind in the northeast.
Revolution Wind and Sunrise Wind are progressing according
to schedule, an Ørsted spokesman said in an email on Friday.
Whitescarver also acknowledged that despite a hopeful
outlook outlined in the new study “Connecticut Offshore Wind Supply Chain
Assessment: Opportunities Collaborative Efforts in the Northeast,” there simply
isn’t a large demand right now because of the dearth of U.S. offshore wind
projects. The supply chain study was initiated by the Connecticut Wind
Collaborative and produced by the Xodus Group. The study's sponsors include the
Southeastern Connecticut Enterprise Region (seCTer), a nonprofit economic development
organization.
Whitescarver, who is also the executive director of seCTer,
said the report is useful because it shows companies locally and throughout the
state are well-positioned to pivot to the offshore wind industry and perhaps
capture some of the business now dominated by European companies.
“One of the first things that seCTer wanted to find out was
where are the gaps in the supply chain," Whitescarver said. “If we do
pivot here from Europe, where would we focus our energies? For southeastern
Connecticut, it's good to know that."
A lot of companies such as Electric Boat often seek ways to
diversify business, Whitescarver said. The study highlights more than 50
companies already contributing to the offshore wind industry or port
infrastructure development and an additional 450 companies with the potential
to enter the sector. Some local companies working with the offshore industry
include Groton-based ThayerMahan, Sea Services North America LLC in New London
and Survival Systems USA in Groton.
The state's unique strengths, according to the study,
include advanced manufacturing, workforce development and companies in the
aerospace and defense industries that are positioned to meet stringent
standards of offshore wind manufacturing. Gaps in the supply chain include
large steel component fabrication supply “where no immediate capability was
identified,” the report states.
Kristin Urbach, executive director of the Connecticut Wind
Collaborative, said despite the fact the state opted not to join neighboring
states in procuring new offshore wind power this year, the state maintains a
goal of buying more in the future.
"This industry ebbs and flows. As a result, this is an
ideal time to follow the strategic roadmap recommendations that includes
collaborating with the five states noted in our study. Notably, the wind farms
that have been built require operations and maintenance work for 25 to 30
years," Urbach said in an email.
The new study will be presented this week at the Oceantic
Network International Partnering forum in Norfolk, Va.
"This conference attracts thousands of industry
professionals. We are also spotlighting the report at a ThayerMahan business
social at their office in Virginia Beach that week," Urbach said. "We
continue to collaborate with our neighboring states to implement the action
items as noted in the study."
New $4M traffic rotary coming to busy New London intersection
John Penney
New London — On Wednesday morning, Tracey Converse took a
break from walking her three-legged dog, Remington Charles, near the busy
intersection of Williams and Broad streets where a new traffic roundabout soon
will be built.
“I’ve seen one accident here in the last three years,” said
Converse, 62. “Yes, there’s been a lot of close calls, but mainly it’s a lot of
beeping because cars aren't moving fast enough.”
Construction of a $4 million state-funded roundabout at the
busy four-way intersection is expected to begin in the fall and lead to safer —
and prettier — travel routes, city officials said.
The rotary and related traffic additions are planned for the
intersection, which is near the Broad Street courthouse and Williams Park, an
area currently served by four traffic signals, several crosswalks and
pedestrian islands.
“We’ve been planning this for three or four years,” Public
Works Director Brian Sear said, noting the project is awaiting final approval
from the state and the Southeastern Connecticut Council of Governments, which
is administering Local Transportation Capital Improvement Program funds needed
to pay for the yearlong construction job.
The job will entail adding a stamped-concrete circle —
complete with ground-level fountain — inside the intersection, while
narrowing entrance streets and adding new sidewalks, curbing, drainage and
yield signs.
Historical photos from the 1940s show a traffic circle at
the intersection that has since been removed.
Mayor Michael Passero said that old circle is the reason the
current configuration does not line up with traffic patterns.
“It’s a dangerous four-way intersection, and we have the
data that shows roundabouts are safer options,” he said, pointing to the 2020
death of a man struck by a car at the intersection.
The city in 2023 added a more complex roundabout on a
section of Jefferson Avenue not far from New London high school to address
frequent traffic back-ups and safety issues. Sear said the city is in early
discussions on adding a roundabout on Vauxhall Street.
The Williams-Broad streets project, the subject of a 2022
public information forum, has cleared initial approval thresholds, including by
the regional council of governments and the state Department of Transportation,
but must still be referred to the city’s Planning and Zoning Commission and
receive right-of-way permission.
Sear said the current traffic configuration, with its dozens
of possible turn options, makes for a dangerous travel route. He said school
officials stopped using crossing guards in the area after it was deemed too
dangerous.
Crash data compiled by the Fuss & O’Neill civil
engineering firm found 16 accidents at the intersection from 2018 to 2020. Of
those crashes, 13 involved only property damage, while three included injuries,
including the 2020 fatality.
Wider curbs and water elements
In addition to the traffic-related components, Sear said the
project will be built with an eye toward aesthetics.
“Right now, you have this beautiful park near the historic
Post Hill neighborhood, but if you stand in that park and look across, all you
see is traffic signal posts and wires,” he said. “When it’s done, it’ll be a
much less cluttered and greener space. And we’ll be widening curbs to create
‘plazas’ where people can set up tables or for other things.”
A fountain that will shoot up streams of water will be
embedded in the circle, a design Sear said was chosen to prevent damage to any
vehicles that might mount curbing. The Jefferson Avenue version boasts a
breakaway sail sculpture.
"What you don't want is a big, heavy statue that
someone might hit," he said, adding new trees will also be planted
throughout the area.
Sear said the widening work will create narrower lanes to
encourage drivers to slow down, while also making exit routes more visible. He
said the curb expansions will require removing about 1,020 square feet of land
on one corner of Williams Park and eliminating a 1,255-square-foot street
parking section on Williams Street.
Passero, who forwarded the idea for the new traffic circle
to Sear after seeing a mid-century photo of the original roundabout, said state
and federal data for such circular interchanges show drivers travel more slowly
when approaching a roundabout.
“With Jefferson Avenue, we proved these projects work,”
Passero said.
Converse, the owner of the Golden Retriever/Labrador mix who
bounces around on his daily walks near the planned roundabout site, said she
was initially skeptical of the project, especially the prospect of losing park
land.
“But it sounds nice, with the fountain and extra curb
space,” she said.
Aquarion undertaking dam work to Dean's Mill dam
Carrie Czerwinski
Stonington — Water levels in the Dean’s Mill Reservoir Dam
may look lower than usual, but the Aquarion Water Co. wants to assure residents
their drinking water is just fine, and there is no cause for concern.
“If customers notice that it is down low, it’s because we
are purposely doing that,” said Aquarion Director of Corporate Communications
Peter Fazekas.
Fazekas said the 5-foot reduction in typical water levels
and equipment in the area are part of a $2 million project to complete routine
maintenance on the Dean’s Mill Reservoir Dam.
“We inspect Dean’s Mill every two years, and we’ve seen an
increase in seepage on portions of the Dean’s Mill Dam, which is why we are
undertaking this rehab,” he said of the project, which began in early February.
The Dean’s Mill Reservoir flows into the Palmer Reservoir,
which is the primary source of drinking water for Aquarion customers in
Stonington and Mystic.
Fazekas explained that the dam features two types of
construction — poured concrete and stone masonry. The two areas constructed
with stone masonry, a 45-foot portion near the spillway and an additional
95-foot section, are the portions the company is addressing.
“Because it is masonry, it does need maintenance over time,”
he said.
He explained that the rehabilitation requires a dry work
area, so the water levels are being artificially lowered, and the company has
installed an additional cofferdam to allow access to the base of the dam.
A cofferdam is a temporary watertight structure built to
keep water out of an area during construction.
With the stone masonry portions dry, workers will repoint
the stonework and then use a fairly liquid substance to grout the completed
work, making the stone portions watertight, Fazekas explained.
He noted the Dean’s Mill Reservoir fills very quickly as it
is located in a large watershed, so the water level is currently being
maintained by a syphon system and by three pumps temporarily installed along
the walkway that can handle heavy rainfall.
Additionally, Fazekas said that it is important to keep the
adjacent Palmer Reservoir full, so the company will pump water from the
upstream Dean’s Mill Reservoir to bolster the Palmer levels if needed.
He said the work is anticipated to be finished in June.
“We expect this to last 25-plus years once this project is
complete,” Fazekas said.